We are looking at a swap with a major bank.  

if you get a break down and it shows you are paying $10,000 for cabinets, yet you know you can get cabinets for $5000, would you go back and ask for them to credit back and use the cheaper ones?

I would always put at least 20% down on both properties to avoid PMI, but does it matter where I put the majority of my down payment, whether it be on the house I live in or the house I rent out?  

I would think local bank or credit union. it would likely be too small for other lenders.

I have been in sales and marketing for almost 30 years. but I have a few major questions that might answer the question of why so many fail at it.1) Do you need a license in the state of California to close these transactions?

Keep in mind the shorter the term, higher the interest, lower LTV, higher borrower credit, strong pay history, all add up to higher resale.

unless you have great credit and are an  experienced real estate investor, no lender will allow a owner second as substitute for borrower contributed capital.2.

If you have good relations with the neighboring property owners, ask them to let you know if it looks like demolition or removal of the major appliances belonging to the rental.  

Local community banks and credit unions are probably your best bet.

This can include past taxes, bank statements, credit reports etc.Stay away from anyone who says they can finance anyone from 5k-50 mil for 4% as well as anyone who asks for upfront fees.